Regulatory Alerts2015-01-01
Decision No. (32) of 2015 of the Authority's Board of Directors Regarding the Amendment of Certain Provisions of Decisions No. (171 and 173) of 2014
The Egyptian Financial Supervisory Authority issued Decision No. 32 of 2015 to amend specific provisions of its prior Decisions No. 171 and 173 of 2014 governing microfinance operators. The revised rules mandate that microfinance companies calculate loan loss provisions based on a tiered percentage scale tied to payment delays, ranging from 2% for current accounts to 100% for balances overdue beyond 120 days. Additionally, the Authority standardized service fees for these entities, setting a fixed 500 Egyptian pound charge for temporary license reviews and an annual supervision fee calculated at 250 pounds per million Egyptian pounds of average client financing balances.
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